International Market Entry Strategies of Multinational Enterprises (MNEs) in Emerging Markets

The Case of Procter & Gamble in China and India

Master's Thesis , 2014 , 113 Pages , Grade: 1

Business economics - Business Management, Corporate Governance

Multinational enterprises (MNEs) are becoming increasingly present on the global market. Since their products and services are offered globally, their multinational strategies must be adapted to different cultures, environments of target countries and their internal strengths. Since the market in the 21st century is oversaturated, it is no wonder that more and more MNEs are targeting emerging markets for multiple business opportunities.

Since markets are very dynamic, entry strategies chosen by MNEs must be up to date with market changes. Although MNEs are present in the global market and well acquainted with its dynamics, entry into certain countries is not always an easy task.

The main concern of this thesis is to evaluate international entry strategies of companies operating in fast moving consumer goods (FMCG) industries in China and India. Additionally, the thesis aims in exploring and evaluating the consistency of the market entry strategies performed by one specific company (P&G) and two different theoretical frameworks, namely:

- Resource-Based Theory by Grant (1991) and
- Eclectic paradigm (OLI) by Dunning (2000).

For the purposes of this thesis I concentrate on one of the largest and best-known MNEs delivering widely known consumer goods, namely, Procter and Gamble (P&G). My interest lies in exploring whether P&G´s market entries in two target markets can be compared to above mentioned theories. If not, the goal is to understand inconsistencies and factors which influence them.

Emerging markets have a very unique nature which could be a challenge even for the most successful MNEs like P&G. Therefore, understanding these could be a very complex but unavoidable process in order to achieve long term winning strategy.

Inhaltsverzeichnis

• English Abstract
• 1. Introduction
• 2. Literature Review
• 2.1. Internationalization of MNEs
• 2.2. Market Entry Strategies
• 2.3. Emerging Markets
• 2.4. Resource-Based Theory
• 2.5. Eclectic Paradigm (OLI)
• 3. Case Study: P&G in China and India
• 3.1. P&G Company Overview
• 3.2. P&G's Market Entry Strategy in China
• 3.3. P&G's Market Entry Strategy in India
• 4. Analysis and Discussion
• 4.1. Comparison of P&G's Market Entry Strategies with Theoretical Frameworks
• 4.2. Factors Influencing P&G's Market Entry Strategies
• 5. Conclusion
• 6. Bibliography

Zielsetzung und Themenschwerpunkte

This master's thesis examines the international market entry strategies of multinational enterprises (MNEs) in emerging markets, specifically focusing on the case of Procter & Gamble (P&G) in China and India. The thesis aims to analyze the consistency of P&G's market entry strategies with two prominent theoretical frameworks: the Resource-Based Theory and the Eclectic Paradigm (OLI).

• Internationalization of MNEs and their entry strategies in emerging markets
• Resource-Based Theory and Eclectic Paradigm (OLI) as theoretical frameworks for analyzing market entry strategies
• Case study of P&G's market entry strategies in China and India
• Comparison of P&G's strategies with the theoretical frameworks
• Factors influencing P&G's market entry decisions

Zusammenfassung der Kapitel

The thesis begins with an introduction that outlines the research problem and objectives. Chapter 2 provides a comprehensive literature review, exploring the internationalization of MNEs, market entry strategies, emerging markets, and the theoretical frameworks of Resource-Based Theory and the Eclectic Paradigm (OLI). Chapter 3 presents a case study of P&G, including an overview of the company and detailed analyses of its market entry strategies in China and India. Chapter 4 analyzes and discusses the findings, comparing P&G's strategies with the theoretical frameworks and identifying key factors influencing its decisions. The thesis concludes with a summary of the main findings and implications for future research.

Schlüsselwörter

The keywords and focus themes of the text include multinational enterprises (MNEs), international market entry strategies, emerging markets, China, India, Procter & Gamble (P&G), Resource-Based Theory, Eclectic Paradigm (OLI), fast moving consumer goods (FMCG), market dynamics, cultural differences, competitive advantage, and strategic decision-making.

• College: University of Vienna
• Grade: 1
• Author: Nikolina Saric (Author)
• Publication Year: 2014
• Pages: 113
• Catalog Number: V282072
• ISBN (eBook): 9783656765882
• ISBN (Book): 9783656765875
• Language: English
• Tags: international, market, entry, strategies, multinational, enterprises, mnes, emerging, markets, case, procter, gamble, china, india